[Reader-list] Highlights of PM’s Independence Day speech - 198

[Rakesh Iyer]

Dear Kshamendra

A correction. The World Bank was not off the mark when it made that remark.
The reason is simple. The $2 we talk about can either be in PPP or in
exchange rate terms. In terms of exchange rate, since $1 generally lies in
the Rs. 40-50 range, at the lowest it means that 80% of the Indians at least
live below Rs. 80 per day, which is factually true going by the NCEUS
report.

On the other hand, assuming it's the PPP value, $1 is equal to Rs. 10 (or
more) approximately, and therefore $2 = Rs 20, and the NCEUS report again
proves it (Rs. 21.6 in urban areas is close to Rs. 20). Therefore, it is not
wide off the mark.

There's a controversy regarding which is the better method to find the value
of a currency, in PPP or market-exchange rates. I don't know what to say
about it, hence I restrict myself to just giving this additional piece of
information.

Regards

Rakesh